Telangana and Andhra Plastics Manufacturers Association (TAAPMA) is urging the Telangana State Government to reduce the Goods and Services Tax (GST) on plastics from 18% to 12%. TAAPMA, which represents 90% of the plastics industry turnover in Telangana and Andhra Pradesh, is a leading trade association that has been in operation for 54 years since its establishment in 1969.
At a curtain raiser event for HIPLEX, the South and Central India’s largest plastics expo, Anil Reddy Vennum, Vice President South of All India Plastics Manufacturers Association (AIPMA), voiced his concerns. He emphasized that the plastic industry is under a lot of stress due to various reasons, including the high GST rate of 18%. The industry operates on thin margins due to intense competition, with many micro, small, and medium enterprises involved. Reducing the GST to 12% would greatly benefit these small players and provide relief to the industry.
The plastic industry plays a crucial role in meeting everyday needs by providing packaging for food products, household articles, and items like lunchboxes, tiffin boxes, and pencil boxes. Most plastic processors are MSME units, and the high GST rate has a significant impact on their operations. Therefore, TAAPMA is calling for a reduction in the GST rate to support these small players and ensure the sustainability of the plastic industry.
